The Analytical Overview of the Main Currency Pairs on 2017.12.22

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.18712

Open: 1.18727

% chg. over the last day: +0.10

Day's range: 1.18169 – 1.18754

52 wk range: 1.0341 – 1.2069

In the Asian trading session, aggressive sales were observed on EUR/USD. The euro is under pressure due to the victory of the supporters of Catalonia's independence in the elections. At the moment, the trading instrument is consolidating. The key range is 1.18350-1.18600. We recommend opening positions from these marks. The attention is focused on economic reports from the United States.

The news feed on the US economy for 2017.12.22:

- Statistics on personal income and spending at 15:30 (GMT+2:00);

- A report on orders for durable goods at 15:30 (GMT+2:00);

- The data on sales of new houses at 17:00 (GMT+2:00).

The indicators do not send accurate signals. The price has fixed between 50 MA and 200 MA.

The MACD histogram is in the negative zone and continues to decline, which indicates a bearish sentiment on EUR/USD.

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which sends a signal to sell EUR/USD.

Trading recommendations

Support levels: 1.18350, 1.18200, 1.17800

Resistance levels: 1.18600, 1.19000

If the statistics from the US turns out to be weak, purchases may prevail on the EUR/USD currency pair. The movement is tending to the round level of 1.19000.

Alternatively, EUR/USD may drop to 1.18000-1.17800.

When following the positions, we recommend using a trailing stop.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.33737

Open: 1.33832

% chg. over the last day: +0.01

Day's range: 1.33636 – 1.33866

52 wk range: 1.1450 – 1.3618

On the GBP/USD currency pairб there was an ambiguous technical pattern. The trading instrument is in a sideways trend. The key range is 1.33550-1.33850. Participants of the financial markets took a wait-and-see approach before the publication of the UK GDP report at 11:30 (GMT+2:00). Positions need to be opened from the key levels of support and resistance.

We recommend paying attention to the news feed on the US economy.

The indicators do not send accurate signals. The price has crossed 50 MA and 200 MA.

The MACD histogram is located near the 0 mark.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which sends a signal to sell GBP/USD.

Trading recommendations

Support levels: 1.33550, 1.33100

Resistance levels: 1.33850, 1.34100, 1.34550

If the UK GDP data is positive, we recommend considering buying GBP/USD. The target movement level is 1.34400-1.34600.

An alternative may be the fall of GBP/USD to 1.33100-1.33000.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.28283

Open: 1.27389

% chg. over the last day: -0.76

Day's range: 1.27153 – 1.27489

52 wk range: 1.2059 – 1.3795

Yesterday, there were aggressive sales of USD/CAD. The drop in quotations exceeded 120 points. Canada published positive reports on inflation and retail sales. The demand for loonie remains at a high level. The USD/CAD currency pair has the potential to further decrease. At the moment, investors are expecting statistics on the GDP of Canada. The key trading range is 1.27000-1.27500. The positions must be opened from these marks.

At 15:30 (GMT+2:00), a report on the GDP of Canada will be published.

The indicators point to the power of sellers. The price has fixed below 50 MA and 200 MA.

The MACD histogram is in the negative zone and continues to decline, which signals a bearish sentiment on USD/CAD.

Stochastic Oscillator has reached the oversold zone, the %K line is below the %D line, which gives a weak signal to sell USD/CAD.

Trading recommendations

Support levels: 1.27000, 1.26500

Resistance levels: 1.27500, 1.28000

If the price fixes below the round level of 1.27000, it is necessary to consider sales of USD/CAD. The movement is tending to 1.26500.

Alternative option. If the price fixes above the resistance level of 1.27500, the correction of USD/CAD quotes is expected. The movement is tending to 1.27750-1.28000.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 113.392

Open: 113.324

% chg. over the last day: -0.06

Day's range: 113.269 – 113.449

52 wk range: 99.53 – 118.67

At the moment, the USD/JPY currency pair has stabilized after a significant rally since the beginning of this week. At the moment, the trading instrument is consolidating. In the near future, a technical correction is not ruled out. The key levels of support and resistance are 113.250 and 113.500 respectively. Participants of the financial markets expect economic reports from the United States. Positions must be opened from the key levels.

The news feed on Japan's economy is calm.

The price is testing 50 MA, which acts as a fairly strong dynamic support.

The MACD histogram does not provide accurate signals. The indicator is located near the 0 mark.

Stochastic Oscillator is in the neutral zone, the% K line crossed the% D line. No signals at the moment.

Trading recommendations

Support levels: 113.250, 112.800, 112.500

Resistance levels: 113.650, 113.700, 114.000

If the price fixes above the level of 113.500, we recommend considering buying USD/JPY. The movement is tending to the round level of 114.000.

Alternative option. If the price fixes below the level of 113.250, the correction of USD/JPY quotes is expected. The target movement level is 112.800.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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